The date for tokenization has been moved up from July 1, 2022, when the new regulations for debit and credit cards were scheduled to take effect, to September 30, 2022.
Before September 30, 2022, all credit and debit card information used in online, point-of-sale, and in-app transactions must comply with a directive from the Reserve Bank of India (RBI). It must be changed out for a special token. Tokenization’s high level of security will improve the payment experience for cardholders. All of your card information will be saved as encrypted “tokens,” which will secure customer payments.
Payments can be made using these tokens without disclosing the identity of the customer. Your credit and debit card transactions will be safer and more convenient with tokenization because it has become necessary to replace the original card data with an encrypted digital token in accordance with RBI requirements.
Additionally, cardholders’ online transaction payments will be improved with the use of this, and cardholder information will be protected from those committing online fraud.
RBI has released new rules to protect clients from risky internet scams. Following these rules, only the card issuing network will be able to store any information pertaining to debit and credit cards, and no one else will be able to do so. It will also be necessary to remove all previously stored data at this time.
The tokenization method will only be used for domestic internet transactions and will be entirely free of charge.
The date for tokenization has been moved up from July 1, 2022, when the new regulations for debit and credit cards were scheduled to take effect, to September 30, 2022.
How to generate token…
Step 1: Start the payment process by going to any e-commerce merchant website or app to make a purchase.
Step 2: Select your card. When checking out, enter your credit and debit card information.
Step 3: Secure the card. To tokenize your card in accordance with RBI guidelines, choose the “secure your card in accordance with RBI guidelines” option.
Step 4: Permit the token to be created. To finish the process, enter the OTP that the bank gave via email or text message.
Step 5: Create the token. Your card information has been changed to a token.
Step 6: The next time you make a payment on the same website or app, the last four digits of your card number will show up to identify your card.
Is this dangerous in any way?
Despite RBI’s claims that the new procedure is safer, there may be “some security dangers.” According to BankBazaar.com’s Chief Technology Officer (CTO), Murari Sreedharan, “With card tokenization, sensitive data on the card is replaced by a token, and the actual data is shared with the network, customer, and card issuer in addition. Nothing is kept anyplace… The implementation of tokenization has increased the complexity of current IT procedures. He claims that while tokenization won’t completely eliminate security risks, it does significantly increase the risk of data theft in particular from third-party programs.
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